The History of Sulu

by Najeeb M. Saleeby

It remains, only, most excellent Sir, to discuss the expediency, or otherwise, of establishing taxation upon commerce, industry, and property. All the urban property of Jolo is in the hands of the Chinese, with so few exceptions that there are not more than three property holders who do not belong to that race. In their hands is all the commerce, with the sole exception of two Spanish houses: every thing relating to business is in their power; so that any burden imposed in this direction would not be borne by them, but would be paid by the garrison of Jolo. For, united as the Chinamen are in every thing that relates to the avoidance of tax-paying, they would come to a perfect understanding to surtax every thing,—not in the same proportion as the contributions they would pay, but with a considerable increase, with the result that the only tax-payer to the treasury and for the Chinaman would be the unfortunate inhabitant of Jolo. And since the population here consists almost entirely of the garrison, which renders such arduous services at this place, I believe that it would not be just to add to the other disadvantages that the service here offers, the very serious one that would result from the imposition of taxes in this capital. Furthermore, one must not lose sight of what might happen or rather what would immediately happen, when, by taxing the commerce of the city, the majority of the Chinamen now established here would go to Maymbung, with a tendency to store their merchandise at other important points in the island, in which places our rule is, it may be said, nominal, and it is unnecessary to insist upon the undesirable consequences that would follow; for we should return to the condition in which Maymbung stood in April of the year 1887, when this town was a very important center of resistence to our rule, due to the facility afforded in that place for the purchase of unlimited arms and ammunition, a business carried on by the foreign steamers who anchored there at that time. And all this without taking into account the undesirability, from a political point of view, of affording the Moros the opportunity of purchasing their supplies at prices lower than those in this city; since, if the merchants in that town did not pay taxes they would be able to sell at lower prices than those in the capital. Summing up what I have stated above and recapitulating the questions herein treated, I will conclude by submitting to the distinguished intelligence of your Excellency that I consider necessary and of the highest political expediency the maintenance of the freedom of the port granted to Jolo; that this franchise should be extended to Siasi, which enjoys this privilege in fact though not by right; and that care should be taken to prevent the slightest obstacle from interfering with the trade at both points, to the end that foreign steamers may, in their own interest, touch only at these two points of the archipelago of Sulu; that the Chinamen should be formed into guilds or associations, after the pattern of the organizations prevailing in other parts of the Philippines, these being necessary, further, to the making up of the lists of tax-payers; that, as a consequence of the formation of these associations, they should be compelled to pay taxes to the same extent as all other Chinamen residing in the country, unless your Excellency is of the opinion that the quota should be increased in consideration of the other advantages they enjoy; that there should be imposed a tax upon smokers of opium and upon the importation thereof. This tax would be a source of revenue of some consideration if it were farmed, as was the intention four years ago, when sale to the highest bidder was desisted from in view of the decree of franchises which is the subject of this communication. Finally, that property, commerce, and industries should not be taxed, nor should the civilian population be burdened with the poll-tax, since the latter deserve consideration by reason of the arduous services they render in this place; and this applies to the garrison, as well as to the civilians who make up the town, who, in the end, would be the persons who alone would have to bear these burdens. Such, most excellent Sir, is the opinion, expressed as succinctly as possible, of the undersigned in regard to these matters, which, at no distant date, will present themselves for resolution and which your Excellency will determine with your well-known ability and good judgment.

Which I have the pleasure to transmit to your most Illustrious Excellency, to the end that you may take note of the part relating to the economic side of this question.

God preserve your most illustrious Excellency for many years.

Manila, July 31st, 1896.

Blanco.

To the most excellent and most illustrious the Intendant-General of the Treasury.

Office of the Intendant-General of the Treasury Division of Direct Imposts

Most excellent and most illustrious Sir: The just considerations set forth by the politico-military governor of Sulu in a communication addressed to his high Excellency the Governor-General of these islands on July 9th of last year, forwarded to your most illustrious Lordship on the 31st of the same month and year, reveal a close study of the questions treated, based upon practice and experience.

The chief of the division of direct imposts, who signs hereunder, in presenting the report ordered by your most illustrious Lordship in your decree of the first day of the following August, must begin by expressing at once his conformity with the views given by the governor of Sulu, in the part relating to this division.

Undoubtedly considerations of the highest political moment led the high authorities of the Archipelago, on August 23rd of 1887, to extend for another term of ten years the franchises granted to Sulu, and since these considerations have not ceased to be of moment, to judge from the enlightened views expressed by the said politico-military governor, it is to be presumed that it is expedient to grant a fresh concession of franchises; but not, at this time, for a period of time equal to that about to expire, though for a period that might well be half that of the previous term; for, regarding the matter prudently, it might happen that during this lapse of time the conditions in the places under discussion should alter in such a way as to counsel either the total suppression of the liberties in question or their partial modification.